Impacts of Information Technology on Society in the New Century
Over the last several decades, there has been an explosion in communications and computing and it is clear that technological advances and the use of technology will continue to grow at the speed of light. The dramatic increase in the technology and power of the new information technology is the decrease in the costs of communication due to both technological advances and an increase in competition. According to Moore's law , the processing power of microchips is increasing by a factor of each 18-month period. These technological advances offer many important opportunities , but they also present big issues. These days, advances in technology have diverse effects on many aspects of society. Policy makers are addressing issues that relate to economic productivity and intellectual property rights privacy protection, as well as the affordability of information and access. The choices made today can have long-lasting consequences and consideration should be paid to their economic and social impact.
A major and important results of the development of technology in information is electronic commerce via the Internet as a completely new method to conduct business. Although it is only a few years old, it could drastically impact economic activity and the social context. It is already affecting major sectors as communications retail and finance, and could extend to other areas such as health and education services. It is the continuous application of information and communications technology across the entire value chain of any business which is carried out electronically. InventHelp reviews
The impact of electronic commerce and information technology on commercial models structures, market structure, workplaces the labour market education, private life and the society in general.
1. Business Models, Commerce and Market Structure
One way that information technology can affect work is to reduce the significance of distance. In many fields the geographical job distribution is shifting dramatically. For instance, some software companies have discovered that they can get around the restricted regional market of software developers by transferring project work overseas for development to India or other countries in which the pay is less. Additionally, these arrangements could make use of time difference so that important projects can be developed almost all the time. Businesses can outsource their manufacturing operations to countries that are not in the same region and use technology to keep the R&D, marketing and distribution teams connected to the manufacturing companies. The technology will allow the better division of labor across nations, which influences the demand for various skill sets in every nation. Technology allows different types of work and jobs to be dissociated from each other. Companies have more freedom to decide where their activities are which means they can compete more effectively between areas in the labor, infrastructure capital, as well as other markets for resources. It also opens up the possibility to regulatory arbitrage as firms are able to choose more often the tax authority or other regulations are in place.
Computing and communication technology also encourage more market-based forms of distribution and production. A network of technology for communication and computing that provides 24/7 access at a minimal cost to virtually every kind of product and price information sought by buyers, could eliminate the informational hurdles to effective market operations. This infrastructure may also provide the ability to make instant transactions, and render intermediaries like sales clerks as well as stock brokers and travelers, who's job is to act as an information connection between sellers and buyers redundant. The elimination of intermediaries could decrease the cost of the distribution and production value chain. Information technology has enabled the development of improved mail-order retailing, in which goods are ordered swiftly through telephones or computer networks. They are then shipped by suppliers using integrated transportation companies that rely heavily on communication and computers to manage their operations. Nonphysical products, such as software, are shipped electronically, thereby eliminating the entire shipping route. Payments can be processed in innovative ways. This leads to a reduction in intermediaries across the distribution channels, which results in reduced costs, lower consumer costs, and greater profits margins.
The impact of technology on firm's cost structure can be seen best in the case of electronic commerce. The most significant areas for cost savings when making the sale through electronic commerce instead of traditional stores are establishment, order placing as well as execution. They also require customer service solid, efficient, inventory carrying and distribution. While setting up and managing an online shop may be costly, it's definitely less costly to run this kind of storefront than a physical store because it's always accessible and is accessible by millions of people around the world and comes with very low variables, which means that it is able to scale up to meet needs. With one store instead of multiple the costs of duplicate inventory are reduced. Additionally, e-commerce can be extremely effective in reducing costs of attracting customers since advertising is usually less expensive than other forms of advertising and is more specific. Furthermore, the interface on the internet permits merchants who sell online to verify that the order is internally identical and that the order invoice, receipt, and order are in line. With e-commerce, companies can move a large portion of their customer service on the internet so that customers are able to gain access to databases or manuals on the fly. This is a significant reduction in costs and generally improving the quality of the service. Online stores require less, yet highly skilled employees. It also allows for savings in cost of carrying inventory. The quicker the product can be purchased and shipped and delivered, the less need there is for large quantities of inventory. The effect on costs that come with fewer inventories is the most noticeable in the industries which the product has short shelf-life (e.g. bananas) and is susceptible to rapid technological obsolescence, or price drops (e.g. computers) or in areas where there is a high increase in the number in the creation of products (e.g. books, music). Even though shipping costs can raise the cost of many goods that are purchased through electronic commerce and add significant to the total cost distribution costs are considerably decreased for digital goods like software, financial services and travel, all of which are essential e-commerce categories.
While electronic commerce leads to the deintermediation of certain intermediaries, it also creates more dependence on others, and the ability to perform completely new functions as intermediaries. Some of the intermediary functions that can add cost to online transactions include advertising as well as secure online payment and delivery. The easy to become an online merchant and creating stores result in an abundance of products that customers can easily become overwhelmed. This makes it more important to advertisements to establish a name for the brand and create a sense of familiarity and confidence. For new start-ups in e-commerce the process could be expensive and represent the cost of transactions for a large amount. The global reach, openness and the absence of physical evidence which are the fundamental characteristics of online shopping also makes it vulnerable to fraud, and raise costs for online sellers when compared with traditional stores. Innovative methods are being developed to ensure the security of credit cards in online transactions, however the requirement for more security and verification can result in increased cost. One of the main benefits of online shopping is the ease of purchasing items directly to the customer. For tangible items like books, it is necessary to pay shipping costs that cause price increases typically, eliminating many of the benefits associated with online shopping and significantly increasing transaction costs.
With the advent of Internet the e-commerce market is quickly expanding into a rapid-moving and open global market, with increasing numbers of players. The global and open nature of online shopping is expected to boost market size and transform market structure as well as the size and number of players and the market players compete in international markets. Digitally-enabled products can be shipped across borders in real-time. Consumers are able to shop all day, 7 all week long and businesses are constantly facing global online competition. The Internet helps to expand existing markets, by breaking down some of the obstacles to distribution and marketing that hinder companies from accessing foreign markets. E-commerce helps reduce information and transaction costs when operating on foreign markets, and offers a low-cost and efficient method of enhancing the relationship between customers and suppliers. It also encourages businesses to create innovative methods of advertising as well as delivering and supporting their products and services. Although e-commerce on the Internet has the potential to open international markets, certain elements like the cost of transport, language and reputation in the local market, and differences in the price and accessibility to networks, limit the potential of this to a lesser or greater degree.
2. Workplace and Labour Market
Technology for communication and computers allow people to connect with each other using methods that complement traditional face-to-face, telephonic and written methods. They facilitate collaborative work with diverse groups of people who rarely or never meet physically. They make use of communications infrastructures that are globally accessible and constantly online which allows for 24 hour activity and synchronous interactions between individuals, groups and even organizations. Social interactions in companies can be affected through the the usage of technology for communication and computers. Peer-to peer relationships across department lines can be improved by sharing data and the coordination of tasks. Communication between superiors and subordinates is likely to become more strenuous due to the social control issues that are raised by the use computers for monitoring, but contrary to that the use of electronic mail will reduce barriers to communicating across levels of status, leading to greater freedom of communication between supervisors and subordinates.
The fact that the significance of distance is diminished through the use of computers and technology for communication is also a benefit of telecommuting, and , consequently, can have implications on the housing habits of citizens. If workers discover that they are able to do the bulk of their work from their homes rather than at a central work environment, the need for homes in climate- and physically appealing regions will rise. The implications of this shift in the employment landscape from suburbs to more remote regions could be devastating. The value of property would increase in areas that are popular and decrease in suburbs. Rural, historic or beautiful aspects of life and surroundings in the new-to-us areas could be threatened. Because the majority of telecommuters are of a higher education and better paid those, the need in these areas for high-end and wealthy services such as gourmet eateries and clothing boutiques will increase. There would also the need for expansion of all kinds of services which would create and expand jobs for local residents.
Through reducing the fixed cost of working Telecommuting in general should allow people to work on flexible schedules, take part-time jobs, work from home, or to be employed in two or more positions at the same time. Since changing employers will not necessarily require changing one's location where they live, telecommuting can improve job mobility and speed the process of advancement in your career. The increased flexibility could reduce stress on the job and improve satisfaction with work. Since stress in the workplace is one of the main factors that affect health, there could be other advantages in terms of lower health expenses or mortality levels. In contrast,, one could also suggest that technology are increasing the range of jobs demanded of workers as well as the variety of skills required to complete these tasks can make work more efficient and increase the stress level and work pressure on employees.
The question that is the most difficult to answer is the impact that communications and computers could impact work. Computers and communications to complete basic tasks like accounting more quickly than human beings causes concern that people could be replaced by computers and communication. The solution to this issue is that, even the case that computers and communications cause the loss of certain workers, new jobs are likely to be created, especially for computer specialists and that the increase in output will boost the overall amount of work. More likely, communications and computers can result in changes to the kinds of workers required in different professions, rather than to changes in employment overall.
Numerous sectors are infected by the advent of electronic commerce. The distribution industry is directly affected since the e-commerce platform is used for providing and delivering products and services. Other industries that are indirectly affected are those that are connected to information and communication technologies (the infrastructure that supports the e-commerce) as well as content-related industries (entertainment software, entertainment) and transactions-related industries (financial sector and travel, as well as advertising transport, finance). eCommerce may also help to create new markets or expand market coverage beyond the traditional boundaries. Expanding markets will be beneficial to the number of jobs. Another issue is the interconnections among various aspects affected by ecommerce. Costs for the e-commerce-related intermediate products and services could create jobs in indirect ways, on the base of the number of electronic transactions as well as their impact on costs, prices and productivity. The convergence of telecommunications, media and computing technology is creating a brand new integrated supply chain that can be used for the creation and distribution of multimedia and information content. The majority of jobs are associated with e-commerce revolves around industry of content and the communication infrastructure like the Internet.
Jobs are created and destroyed by technological advancements trade, technology, and organizational changes. These processes also cause shifts in the skills composition of the work force. In addition to the net job gains or losses caused due to these causes it is evident that people with different skill levels will be impacted in different ways. The growth of online commerce is definitely driving the requirement for IT professionals, but they also require IT expertise that is matched with a solid business knowledge and thereby creating the need for a versatile, multi-skilled workforce. There is a need to integrate Internet front-end apps with enterprise operations applications, back-end databases and other software. A lot of IT knowledge requirements to provide Internet support are met by low-paying IT employees who are able to handle the administrative requirements for web page programming. However, wide-area websites, networks that compete and more complex network applications require more expertise than an IT position that is specifically geared towards a platform. Because the competencies required for e-commerce are scarce and highly sought-after and in high demand, e-commerce may increase the rate of upskilling across many countries as it requires high-skilled computer experts to replace less skilled information clerks or cashiers, as well as market salespersons.
3. Education
The advancements in technology influence the method of teaching by enhancing instead of eliminating traditional classes. The effective instructor is able to function in a variety of different roles. In one sense, the instructor acts as a provider of assistance to students, who could be considered as customers. But the successful instructor plays another position as a teacher of students, and also plays the role of engaging and encouraging, evaluating, and educating students. In any subject, there will always be a tiny percent of students who have the background determination, motivation, and self-control to be able to benefit from self-paced books or instruction via computer. For the vast majority of students it is true that instructors who live in the classroom is going to continue to be superior to the computer-aided counterpart in ensuring positive learning results. The biggest potential of technological advancement lies in increasing the efficiency of students who are not in the classroom. Making solutions to problems and reading materials for students available via the Internet can provide a lot of convenience. Email greatly facilitates communication between faculty and students and between students who could be working on group projects. The advancements in technology can affect the art of teaching, by enhancing instead of removing traditional class instruction. In fact, the most effective teacher plays in a variety of duties. In one sense, the instructor provides of support to students, and they could be thought of as customers. However, an effective instructor plays an additional role as a teacher of students and has an important role in engaging as well as encouraging, evaluating and improving students. In any subject, there is always a small percent of students who have sufficient background determination, motivation, and self-control to be able to benefit from self-paced books or computer-aided instruction. The majority of students it is true that an instructor who is live is likely to remain superior to an instructor who is computer-aided in helping students achieve positive results. The biggest potential of new technology in information technology is making more efficient the students who are not in the classroom. Making solutions to problems and the reading materials that students are assigned online Internet provides a great deal of convenience. E-mail greatly eases communication between faculty and students as well as between students working on group assignments. InventHelp review
While distance learning has been around for a while however, the Internet allows for a massive spread of coverage as well as a better teaching. Text can be integrated with audio and video and students can communicate in real-time via email and discussion groups. The technological advancements are in line with a growing need for retraining among those who, because of the demands of work and family and other obligations, are not able to attend traditional courses. Distance learning through the Internet will likely enhance existing educational institutions for children and university students, however, it could also have an effect of substitution for continuing education programs. Certain degree programs the most prestigious institutions can leverage their prestige to draw students who otherwise would attend an institution in the local area. Due to the ease of access and its convenience for distance-learning, the overall demand for these courses will likely increase and lead to growth in this particular area of electronic commerce.
As we have seen in the previous section, advanced abilities are essential in a knowledge-based, technology-based highly populated economy. The rapid technological advancements in the industry have made continuous improvement of professional competencies essential to the economic viability. The aim of continuous learning is achievable only through strengthening and modifying the existing learning systems that are in both the both the private and public sectors. The growing demand for training and education is a concern that requires all aspects of current technologies. Information technology is unique in their ability to provide solutions to meet this need. Online training on the Internet includes self-study classes to full online classrooms. Computer-based training programs offer an opportunity to acquire skills in a variety of ways as well as being more affordable and useful than traditional classes and seminars.